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Last Updated on: 22 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Solara Active Pharma Sciences Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 9:04 pm

Market Cap 2,994 Cr.
Current Price 687
High / Low 886/303
Stock P/E
Book Value 302
Dividend Yield0.00 %
ROCE8.67 %
ROE33.5 %
Face Value 10.0
PEG Ratio0.00

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for

Competitors of

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Themis Biosyn Ltd 3,354 Cr. 308 390/12863.6 20.50.22 %45.0 %33.8 % 1.00
Gujarat Terce Laboratories Ltd 62.6 Cr. 84.4 94.9/26.624.0 11.90.00 %9.72 %3.44 % 10.0
Gujarat Inject (Kerala) Ltd 35.9 Cr. 24.5 24.5/8.7446.6 6.640.00 %2.65 %2.08 % 10.0
Godavari Drugs Ltd 86.7 Cr. 115 155/87.013.0 55.40.00 %14.4 %15.5 % 10.0
Glenmark Life Sciences Ltd 12,416 Cr. 1,013 1,335/64529.3 2072.22 %28.1 %21.1 % 2.00
Industry Average19,016.52 Cr1,181.3156.05186.300.32%16.20%16.32%6.27

All Competitor Stocks of

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales444406402100361330338395381352425249299
Expenses345314330197347318311350332333388410290
Operating Profit999172-9714132845491938-16210
OPM %22%23%18%-97%4%4%8%11%13%5%9%-65%3%
Other Income10533574752-4-62-120
Interest25191718212222242225242531
Depreciation27282828282829282626262625
Profit before tax575030-140-31-31-1915-29-17-275-167
Tax %0%-0%-0%-0%106%47%48%22%25%35%-0%-0%-53%
Net Profit575030-1402-16-1004-19-17-275-255
EPS in Rs11.8310.476.20-29.200.39-3.42-2.080.090.79-4.07-3.58-57.36-53.20

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales5211,3871,3221,6171,2681,4441,2891,337
Expenses4641,1741,0621,2311,1881,3091,3841,409
Operating Profit5721326038681134-95-72
OPM %11%15%20%24%6%9%-7%-5%
Other Income21227291622-185-186
Interest258278847590105111
Depreciation348394109112111103102
Profit before tax060115222-91-45-488-473
Tax %-70%1%0%0%-36%-50%16%
Net Profit059115221-58-22-567-561
EPS in Rs17.3032.0146.22-12.11-4.62-118.21-117.88
Dividend Payout %0%22%5%11%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)94.92%92.17%-126.24%62.07%-2477.27%
Change in YoY Net Profit Growth (%)0.00%-2.74%-218.42%188.31%-2539.34%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 5 years from 2019-2020 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:-1%
3 Years:-7%
TTM:-19%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-1456%
Stock Price CAGR
10 Years:%
5 Years:11%
3 Years:-9%
1 Year:126%
Return on Equity
10 Years:%
5 Years:-2%
3 Years:-11%
Last Year:-34%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:37 pm

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital2526273636363640
Reserves7399301,0591,5531,4891,4648981,046
Borrowings6335387226211,0371,0131,012840
Other Liabilities425466346404383386406364
Total Liabilities1,8211,9602,1532,6142,9452,8992,3512,290
Fixed Assets1,0861,2181,3971,3821,3561,3641,2681,231
CWIP71404088239238256272
Investments10000222
Other Assets6637017161,1441,3501,295825786
Total Assets1,8211,9602,1532,6142,9452,8992,3512,290

Reserves and Borrowings Chart

Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +49166242155-242156109
Cash from Investing Activity +-85-113-359-106-243-81-4
Cash from Financing Activity +68-239792334-113-106
Net Cash Flow3130-20142-151-38-0

Free Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-576.00-325.00-462.00-235.0080.00133.00-96.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days184766310914113699
Inventory Days252111170149321258163
Days Payable420127132156154142142
Cash Conversion Cycle1660101102308252120
Working Capital Days1073467118251213126
ROCE %10%12%15%-0%2%-9%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters41.07%39.51%39.71%40.40%40.41%40.41%40.98%39.31%37.19%30.49%30.49%37.27%
FIIs17.28%18.15%19.42%17.93%18.47%19.26%19.30%18.71%17.86%16.62%15.80%14.00%
DIIs6.05%5.40%3.64%3.10%2.97%3.01%2.75%1.75%1.79%1.75%2.97%2.83%
Public35.60%36.94%37.22%38.57%38.16%37.32%36.95%40.22%43.16%51.14%50.73%45.89%
No. of Shareholders65,44973,00077,22882,71083,31979,14976,32575,41774,47372,91873,91277,170

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Aditya Birla Sun Life Flexi Cap Fund420,0000.0815.17420,0002024-12-180%
Aditya Birla Sun Life Midcap Fund130,0000.094.7420,0002024-12-18-69.05%
Aditya Birla Sun Life Manufacturing Equity Fund65,0000.292.35420,0002024-12-18-84.52%
Motilal Oswal S&P BSE Healthcare ETF1830.070.01420,0002024-12-18-99.96%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-157.62-6.16-16.1869.0044.29
Diluted EPS (Rs.)-157.62-6.16-16.1864.5342.82
Cash EPS (Rs.)-128.7924.7015.0191.8777.72
Book Value[Excl.RevalReserv]/Share (Rs.)260.16417.35424.22443.42370.29
Book Value[Incl.RevalReserv]/Share (Rs.)260.16417.35424.22443.42370.29
Revenue From Operations / Share (Rs.)358.03401.06352.32450.13492.27
PBDIT / Share (Rs.)-24.9543.4527.77115.43106.88
PBIT / Share (Rs.)-53.6512.57-3.4285.1871.81
PBT / Share (Rs.)-135.67-12.45-25.3161.6642.80
Net Profit / Share (Rs.)-157.49-6.18-16.1961.6242.65
NP After MI And SOA / Share (Rs.)-157.61-6.16-16.1561.6442.69
PBDIT Margin (%)-6.9610.837.8825.6421.71
PBIT Margin (%)-14.983.13-0.9718.9214.58
PBT Margin (%)-37.89-3.10-7.1813.698.69
Net Profit Margin (%)-43.98-1.54-4.5913.688.66
NP After MI And SOA Margin (%)-44.02-1.53-4.5813.698.67
Return on Networth / Equity (%)-60.75-1.47-3.8113.9311.57
Return on Capital Employeed (%)-17.422.51-0.6516.7613.54
Return On Assets (%)-24.13-0.76-1.968.475.32
Long Term Debt / Equity (X)0.110.150.180.090.23
Total Debt / Equity (X)1.070.660.670.320.59
Asset Turnover Ratio (%)0.490.490.450.670.64
Current Ratio (X)0.641.081.161.340.92
Quick Ratio (X)0.350.570.610.960.53
Inventory Turnover Ratio (X)1.661.371.972.382.49
Dividend Payout Ratio (NP) (%)0.000.00-18.538.9013.63
Dividend Payout Ratio (CP) (%)0.000.0019.905.977.48
Earning Retention Ratio (%)0.000.00118.5391.1086.37
Cash Earning Retention Ratio (%)0.000.0080.1094.0392.52
Interest Coverage Ratio (X)-0.851.741.334.913.68
Interest Coverage Ratio (Post Tax) (X)-2.580.750.273.622.47
Enterprise Value (Cr.)2334.272176.743374.175329.561723.87
EV / Net Operating Revenue (X)1.811.512.663.301.30
EV / EBITDA (X)-25.9913.9233.7412.856.01
MarketCap / Net Operating Revenue (X)1.040.811.893.100.90
Retention Ratios (%)0.000.00118.5391.0986.36
Price / BV (X)1.440.781.573.151.20
Price / Net Operating Revenue (X)1.040.811.893.100.90
EarningsYield-0.42-0.01-0.020.040.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 22, 2024 is: 1,547.90

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 22, 2024, is Undervalued by 125.31% compared to the current share price 687.00

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of as of December 22, 2024 is: 557.43

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 22, 2024, is Overvalued by 18.86% compared to the current share price 687.00

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -63.99%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (1,147.25 cr) compared to borrowings (802.00 cr), indicating strong financial stability.
  1. The stock has a low average ROCE of 4.29%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 130.86, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 137.00, which may not be favorable.
  4. The company has not shown consistent growth in sales (66.00) and profit (-87.50).
  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in :
    1. Net Profit Margin: -43.98%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: -17.42% (Industry Average ROCE: 16.2%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: -60.75% (Industry Average ROE: 16.32%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): -2.58
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.35
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 0 (Industry average Stock P/E: 56.05)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 1.07
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Solara Active Pharma Sciences Ltd. is a Public Limited Listed company incorporated on 23/02/2017 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24230MH2017PLC291636 and registration number is 291636. Currently Company is involved in the business activities of Manufacture of medicinal substances used in the manufacture of pharmaceuticals: antibiotics, endocrine products, basic vitamins; opium derivatives; sulpha drugs; serums and plasmas; salicylic acid, its salts and esters; glycosides and vegetable alkaloids; chemically pure suger etc.. Company’s Total Operating Revenue is Rs. 1268.34 Cr. and Equity Capital is Rs. 36.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Pharmaceuticals201, Devavrata, Sector 17, Vashi, New Mumbai Maharashtra 400703investors@solara.co.in
http://www.solara.co.in
Management
NamePosition Held
Mr. R RamakrishnanChairman & Ind.Director
Mr. Poorvank PurohitManaging Director & CEO
Mr. Mohan MuthunarayananCOO & Executive Director
Mr. Manish GuptaNon Executive Director
Mr. Kartheek Chintalapati RajuNon Executive Director
Mr. Arun KumarNon Executive Director
Dr. Kausalya SanthanamIndependent Director
Mr. Rajiv Vijay NabarIndependent Director
Mr. Rajendra Kumar SrivastavaIndependent Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 22 December 2024 is ₹1547.90, which is 125.31% higher than the current market price of ₹687.00. The stock has a market capitalization of 2,994 Cr. and recorded a high/low of 886/303 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹1,046 Cr and total liabilities of ₹2,290 Cr.

What is the Market Cap of ?

The Market Cap of is 2,994 Cr..

What is the current Stock Price of as on 22 December 2024?

The current stock price of as on 22 December 2024 is 687.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 886/303.

What is the Stock P/E of ?

The Stock P/E of is .

What is the Book Value of ?

The Book Value of is 302.

What is the Dividend Yield of ?

The Dividend Yield of is 0.00 %.

What is the ROCE of ?

The ROCE of is 8.67 %.

What is the ROE of ?

The ROE of is 33.5 %.

What is the Face Value of ?

The Face Value of is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in . Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE